What should the current value of impossible food shares be

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Reference no: EM133372329

Question: Time left 0:58:5 Impossible Foods has become a big plant-based food business over the recent years. The company expects to pay its first dividend of $1.10 one year from today. Dividends are then expected to grow at a rapid rate of 30% from next year onwards for 3 years and then at a constant growth rate of 8%. The required rate of return is 16%. You have been asked to conduct a share valuation: 1. What should the current value of Impossible food's shares be? Show workings 2. If the market price of the share is $50, is the share over-priced, under-priced or fairly priced?

Reference no: EM133372329

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